Both USGAAP and IFRS Permit Considerable Flexibility with Respect to the the Display

question 110

Multiple Choice

Both U.S.GAAP and IFRS permit considerable flexibility with respect to the display of information in the statement of cash flows.Firms must report the beginning and ending cash balances, and the change in the cash balance. The change in cash must reconcile to the sum of the cash inflows and outflows from _____ activities.

• A)operating
• B)investing
• C)financing
• D)operating, investing, and financing
• E)none of the above

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Definitions:

Applied Manufacturing Overhead

The portion of manufacturing overhead costs allocated to individual products based on the predetermined overhead rate.

Predetermined Overhead Rate

A rate calculated before a period begins by dividing estimated overhead costs by an estimated allocation base, used to apply overhead to products or jobs.

Work in Process Account Balance

Represents the total cost accumulated for products that are currently in production but not yet completed.

Ending

The final point or conclusion of a financial statement or period.